Platooning of vehicular systems has been considered an effective solution for alleviating traffic congestion and reducing energy consumption. Because of limitations in onboard sensors, the measurement system inevitably suffers from measurement delays and noise, yet it receives insufficient attention. In this article, to deal with the measurement delays and noise while improving convergence performance, the platoon control problem of vehicular systems is studied under the nonsingular terminal sliding mode control (NTSMC) framework. A sliding mode observer (SMO) is proposed to estimate the states affected by measurement delays and noise. A distributed NTSMC scheme is developed for the platooning of the vehicular systems and ensures the convergence of the sliding mode surface affected by measurement delays and noise. One salient feature of the proposed SMO is that it can handle time-varying measurement delays rather than constant ones. Moreover, the control law is free of initial spacing error conditions under the employed coupled spacing policy. Numerical simulations are finally provided to demonstrate the effectiveness and efficiency of the proposed algorithm.